Analyst Jacks His Price Target On Apple Because Of The 'Selfie Craze'

Piecyk is upping his target to $135 from $128 based mostly on the
"selfie craze" and Apple's improved camera
functions for the iPhone 6.

Sounds kind of silly, but it makes perfect sense. Apple
upgraded the front-facing camera, and as a result photos taken
with that camera are three times as large as they were in the
past. The new iPhone can do slow-motion video, which
produces large files.

Beyond the immediate fiscal bump, Piecyk speculates that the
improved video camera will lead to people shooting and editing
more video. The video editing will be done either on iOS devices
or on Macs. Either way, people are driven deeper into Apple's
ecosystem, which keeps them locked in.

While much of the previous analysis is a bit squishy, Piecyk's
price target increase is based on firm numbers.

He thinks Apple is going to sell 62.5 million iPhones in the
holiday quarter, up from 60 million previously. If Apple hits
Piecyk's number, it would be a 22.5% year-over-year jump in
sales. He's also upping his estimate for the price of an iPhone
to $624, versus $609 previously. And he's increasing his estimate
for the company's gross margin in fiscal 2015 to 38% up from
37.8%.